Adding a teenage driver to your auto policy will raise your premium — but there are ways to keep the increase manageable. Here's what every parent should know.
The day your teenager gets their license is exciting — and expensive. Adding a young driver to your policy can increase your premium by 50–100% or more, depending on the carrier and your teen's driving profile. Here's how to navigate it.
Why Teen Premiums Are So High
Drivers ages 16–19 are nearly 3 times more likely to be involved in a fatal crash per mile driven than drivers age 20 and older, according to the CDC. Insurers price this risk accordingly.
Good Student Discount
Most carriers offer a 5–15% discount for teens who maintain a B average or higher. Keep a copy of your teen's most recent report card handy when you call your agent.
Defensive Driving Course
Completing an approved driver education or defensive driving course typically unlocks an additional discount and — more importantly — makes your teen a safer driver.
Choose the Right Vehicle
The car your teen drives dramatically affects the premium. Older, moderately priced vehicles with high safety ratings cost significantly less to insure than newer or sporty models. The IIHS (Insurance Institute for Highway Safety) publishes a list of recommended vehicles for teens each year.
Consider a Separate Policy
In some situations, insuring a teen on their own basic policy costs less than adding them to yours. An ATI agent can run the numbers both ways to find the best option for your family.
Usage-Based Insurance
Some carriers offer telematics programs that track driving behavior (speed, hard braking, time of day). Safe teen drivers can earn substantial discounts — and you get peace of mind knowing how they're actually driving.
An ATI agent can compare teen driver rates across multiple carriers in minutes. Get started here →